NEED HELP ON:

Now assume that the hospital uses the step-down method for cost al-location, with salary dollars as the cost driver for general administration, housekeeping labor hours as the cost driver for facilities, and patient ser- vices revenue as the cost driver for ?nancial services. Assume also that the general administration department provides the most services to other support departments, followed closely by the facilities department. The ?nancial services department provides the least services to the other sup-port departments.

a. Use an allocation table to allocate the hospitals overhead costs to the patient services departments.

b. Compare the dollar allocations with those obtained in Problem 6.4. Explain the differences.

c. Is the direct method or the step-down method better for cost alloca-tion within St. Benedicts? Explain your answer.